VeriFone shares on track for worst day in 3 months after giving dismal guidance

A customer enters their pin number as they make a chip and pin payment via a Verifone Systems credit card payment device.

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Shares of VeriFone Systems plunged as much as 20 percent on Friday after the company gave dismal fourth-quarter guidance.

The company said on Thursday it expects fourth-quarter adjusted earnings of 28 cents to 29 cents on $460 million in revenue, far below analysts' predictions of earnings of 50 cents per share on revenue of $536 million, according to a Thomson Reuters consensus estimate.

The stock later recovered some of its losses, but still ended the day down more than 16 percent, its worst performance since June 8.

VeriFone also reported earnings of 42 cents a share on $493 million in revenue. Wall Street had expected the company to post earnings of 40 cents a share on $516 million in revenue.

As of the stock's Thursday close, it had fallen more than 28 percent since the beginning of the year.